Study Notes as an Introduction on Marketing
Index:-
• Notes on Introduction to Marketing
• Notes on Market Segmentation
• Notes on Multi-Level Marketing
• Notes on Organization Structure
• Notes on the Channels of Distribution
• Notes on Direct Marketing
• Notes on Marketing Orientations
• Notes on Marketing Environment
• Notes on Societal Marketing
• Notes on Marketing Mix
• Notes on Product
• Notes on Retail Audit
• Notes on Marketing Ethics
• Notes on International Marketing Channels
• Notes on Virtual Marketing
• Notes on Marketing Information System
• Notes on Market Research
• Notes on Advertising Research
• Notes on Integrated Marketing Communication (IMC)
• Notes on Rural Marketing
• Notes on Advertising
• Notes on Service Marketing Mix
• Notes on Retailing
• Notes on Strategic Marketing
• Notes on Demand Forecasting
• Notes on Business Markets
, • Notes on Rural Marketing Mix
• Notes on Brand Positioning
• Notes on Online Retailing
• Notes on Personal Selling
Notes on Introduction to Marketing # 1. Introduction to Marketing:
Till 1950, marketing was usually sales-oriented and the selling concept stressed the need of high pressure
salesmanship and advertising to secure maximum sales volume. Since 1950, we have customer-oriented
marketing plans and programmes and this customer-orientation is called the marketing concept.
The essence of marketing concept is that customer and not the product shall be the centre or the heart of
the entire business system. It emphasizes customer-oriented marketing process. All business operations
revolve around customer satisfaction and service. Marketing plans, policies and programmes are
formulated to serve efficiently customer demand.
Marketing research and marketing information service is expected to provide adequate, accurate and latest
information regarding target markets and current consumer wants as well as dealer wants to the marketing
managers and on the basis of such realistic information, they will take sound decision on any marketing
problem. The entire marketing mix will be formulated on the basis of marketing research.
Two radical changes were brought about when the marketing concept was introduced after 1950 in the
process of marketing:
1. We have a steady shift from the product-oriented or sales-oriented business enterprise to the customer-
oriented business enterprise. Marketing and innovation are now the distinguishing features of a business
organization from those of other types of social institution
2. We have also a gradual shift from caveat emptor (buyer beware) to caveat vendor (seller beware). This
has clearly emphasized the social responsibility of business towards consumer and the need for consumer
protection in the market place.
According to American Marketing Association, “Marketing is the process of planning and executing the
conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that
satisfy individual and organizational goals”.
,According to the Marketing Guru, ‘Philip Kotler’, “Marketing is typically seen as the task of creating,
promoting, and delivering goods and services to consumers and businesses; it is defined as a societal
process by which individuals and groups obtain what they need and want through mating, offering, and
freely exchanging products and services of value with others.”
Sometimes, marketers confuse marketing with selling, since they consider marketing as an art of selling
products. However, marketing is different from selling in many ways.
Short Notes on Marketing # 2. Market Segmentation:
The total market for many of the products is not homogeneous but too much heterogeneous because
people have different needs and wants and therefore, marketer cannot derive maximum benefit from an
analysis of marketing as a whole. For example, there may be total market for textiles, electrical appliances,
refrigerators, etc., but within the total for each of these products, there might actually exist many sub-
markets which differ virtually from each other.:
Under textile markets, in one section of the population, there might be huge demand for cotton textile, in
another for synthetic fibre textiles and yet in another for pure silk garments. This diversity may be due to
differences in income of the people, taste, fashion buying habits or motives, etc. Further no two customers
are identical in their demand.
Therefore, to take advantage of this situation, the marketers may divide the total market into smaller
groups of consumers on the basis of significant difference in buyer characteristics or buyer responses to
marketing programs.
By tailoring product designs, pricing policies, promotion and distribution channels to meet the needs of
these small groups’ marketers often gain a competitive advantage. This kind of marketing strategy is also
consistent with the marketing concept, which requires the identification of the consumer wants and needs
and development of marketing programs to satisfy them.
According to Stanton, “Market segmentation consists of taking the total heterogeneous market for a
product and dividing it into several sub-markets or segments each of which tends to be homogeneous in all
significant aspects.”
Market segmentation is the process of dividing a potential market into distinct sub-markets of consumers
, with common needs and characteristics. Market segmentation is the starting step in applying the marketing
strategy. Once segmentation takes place, the marketer targets the identified customer groups with proper
marketing-mix so as to position the product/band/company as perceived by the target segments.
From the perspective of the marketing manager, market segmentation involves two closely related areas.
First, the total market for any product can be sub-divided or segmented into groups of potential customers
who are homogeneous with respect to certain wants or desires. Second, it might be advantageous to the
organisation to serve one or more of these market segments.
Market segments are large identifiable groups like customers interested in personal computer, laptop,
tablet, etc. It is possible that a market creates a niche. Niche is a narrowly defined group of customers that
have a distinct and complex set of needs.
Thus, in Cycle Industry, there might be segments like cycle for regular users, sports, adventure, racing, kids,
girls, etc. Niche is created when cycle is required for health clubs, physically handicapped with left and right
hand working, etc. In the niches, there are few or no competitors and the product might command a
premium price.
Complete Notes on Marketing # 3. Multi-Level Marketing:
Multi-level marketing (MLM) is a mode of direct marketing followed by a producer or marketer. Multi-level
marketing, pioneered by Amway, consists of recruiting independent business persons who act as
distributors of company’s product. Each distributor can further engage other sub distributors and so on.
The distributor’s compensation includes a percentage of sales of those engaged by the distributor as well as
earnings (margins) on direct sales to the customers.
Under multi-level or network marketing, the product reaches the customers from the manufacturer via
distributors, sub-distributors, sub-sub distributors and sub-sub-sub distributors. The distributors are
organised in the form of hierarchy, i.e., level I, level II, level III and so on. Each of the distributors is also a
customer. The products are always sold directly to the customers. The conventional retail route is
completely by-passed.
In multi-level marketing (MLM), individuals become associated with the parent company in an independent
contractual relationship. They are compensated based on their sales of company’s products or services, as
Index:-
• Notes on Introduction to Marketing
• Notes on Market Segmentation
• Notes on Multi-Level Marketing
• Notes on Organization Structure
• Notes on the Channels of Distribution
• Notes on Direct Marketing
• Notes on Marketing Orientations
• Notes on Marketing Environment
• Notes on Societal Marketing
• Notes on Marketing Mix
• Notes on Product
• Notes on Retail Audit
• Notes on Marketing Ethics
• Notes on International Marketing Channels
• Notes on Virtual Marketing
• Notes on Marketing Information System
• Notes on Market Research
• Notes on Advertising Research
• Notes on Integrated Marketing Communication (IMC)
• Notes on Rural Marketing
• Notes on Advertising
• Notes on Service Marketing Mix
• Notes on Retailing
• Notes on Strategic Marketing
• Notes on Demand Forecasting
• Notes on Business Markets
, • Notes on Rural Marketing Mix
• Notes on Brand Positioning
• Notes on Online Retailing
• Notes on Personal Selling
Notes on Introduction to Marketing # 1. Introduction to Marketing:
Till 1950, marketing was usually sales-oriented and the selling concept stressed the need of high pressure
salesmanship and advertising to secure maximum sales volume. Since 1950, we have customer-oriented
marketing plans and programmes and this customer-orientation is called the marketing concept.
The essence of marketing concept is that customer and not the product shall be the centre or the heart of
the entire business system. It emphasizes customer-oriented marketing process. All business operations
revolve around customer satisfaction and service. Marketing plans, policies and programmes are
formulated to serve efficiently customer demand.
Marketing research and marketing information service is expected to provide adequate, accurate and latest
information regarding target markets and current consumer wants as well as dealer wants to the marketing
managers and on the basis of such realistic information, they will take sound decision on any marketing
problem. The entire marketing mix will be formulated on the basis of marketing research.
Two radical changes were brought about when the marketing concept was introduced after 1950 in the
process of marketing:
1. We have a steady shift from the product-oriented or sales-oriented business enterprise to the customer-
oriented business enterprise. Marketing and innovation are now the distinguishing features of a business
organization from those of other types of social institution
2. We have also a gradual shift from caveat emptor (buyer beware) to caveat vendor (seller beware). This
has clearly emphasized the social responsibility of business towards consumer and the need for consumer
protection in the market place.
According to American Marketing Association, “Marketing is the process of planning and executing the
conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that
satisfy individual and organizational goals”.
,According to the Marketing Guru, ‘Philip Kotler’, “Marketing is typically seen as the task of creating,
promoting, and delivering goods and services to consumers and businesses; it is defined as a societal
process by which individuals and groups obtain what they need and want through mating, offering, and
freely exchanging products and services of value with others.”
Sometimes, marketers confuse marketing with selling, since they consider marketing as an art of selling
products. However, marketing is different from selling in many ways.
Short Notes on Marketing # 2. Market Segmentation:
The total market for many of the products is not homogeneous but too much heterogeneous because
people have different needs and wants and therefore, marketer cannot derive maximum benefit from an
analysis of marketing as a whole. For example, there may be total market for textiles, electrical appliances,
refrigerators, etc., but within the total for each of these products, there might actually exist many sub-
markets which differ virtually from each other.:
Under textile markets, in one section of the population, there might be huge demand for cotton textile, in
another for synthetic fibre textiles and yet in another for pure silk garments. This diversity may be due to
differences in income of the people, taste, fashion buying habits or motives, etc. Further no two customers
are identical in their demand.
Therefore, to take advantage of this situation, the marketers may divide the total market into smaller
groups of consumers on the basis of significant difference in buyer characteristics or buyer responses to
marketing programs.
By tailoring product designs, pricing policies, promotion and distribution channels to meet the needs of
these small groups’ marketers often gain a competitive advantage. This kind of marketing strategy is also
consistent with the marketing concept, which requires the identification of the consumer wants and needs
and development of marketing programs to satisfy them.
According to Stanton, “Market segmentation consists of taking the total heterogeneous market for a
product and dividing it into several sub-markets or segments each of which tends to be homogeneous in all
significant aspects.”
Market segmentation is the process of dividing a potential market into distinct sub-markets of consumers
, with common needs and characteristics. Market segmentation is the starting step in applying the marketing
strategy. Once segmentation takes place, the marketer targets the identified customer groups with proper
marketing-mix so as to position the product/band/company as perceived by the target segments.
From the perspective of the marketing manager, market segmentation involves two closely related areas.
First, the total market for any product can be sub-divided or segmented into groups of potential customers
who are homogeneous with respect to certain wants or desires. Second, it might be advantageous to the
organisation to serve one or more of these market segments.
Market segments are large identifiable groups like customers interested in personal computer, laptop,
tablet, etc. It is possible that a market creates a niche. Niche is a narrowly defined group of customers that
have a distinct and complex set of needs.
Thus, in Cycle Industry, there might be segments like cycle for regular users, sports, adventure, racing, kids,
girls, etc. Niche is created when cycle is required for health clubs, physically handicapped with left and right
hand working, etc. In the niches, there are few or no competitors and the product might command a
premium price.
Complete Notes on Marketing # 3. Multi-Level Marketing:
Multi-level marketing (MLM) is a mode of direct marketing followed by a producer or marketer. Multi-level
marketing, pioneered by Amway, consists of recruiting independent business persons who act as
distributors of company’s product. Each distributor can further engage other sub distributors and so on.
The distributor’s compensation includes a percentage of sales of those engaged by the distributor as well as
earnings (margins) on direct sales to the customers.
Under multi-level or network marketing, the product reaches the customers from the manufacturer via
distributors, sub-distributors, sub-sub distributors and sub-sub-sub distributors. The distributors are
organised in the form of hierarchy, i.e., level I, level II, level III and so on. Each of the distributors is also a
customer. The products are always sold directly to the customers. The conventional retail route is
completely by-passed.
In multi-level marketing (MLM), individuals become associated with the parent company in an independent
contractual relationship. They are compensated based on their sales of company’s products or services, as
